Hindustan Unilever Limited · NSE:HINDUNILVR

Hindustan Unilever — Goldman Sachs India CIO Tour 2019

44 slides from Hindustan Unilever's conference presentation, Dec 4, 2019

  1. Slide 1: Hindustan Unilever Limited - Investor Presentation filing letter

    Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 4th December, 2019 Tel: +91 (22) 5043 3000 Web: www.hul.co.in CIN: L15140MH1933PLC002030 Stock Code BSE: 500696 NSE: HINOUN IL VR /SIN: INE030A01027 BSE Limited, National Stock Exchange ht India Ltd Corpor

  2. Slide 2: Goldman Sachs: India CIO Tour

    Hindustan Unilever Limited Sanjiv Mehta, Chairman & Managing Director Goldman Sachs: India CIO Tour | 4th December 2019

  3. Slide 3: Safe Harbour Statement

    SAFE HARBOUR STATEMENT This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar

  4. Slide 4: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  5. Slide 5: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  6. Slide 6: Purposeful Brands Strengthening Our Core: Laundry

    N PURPOSEFUL BRANDS STRENGTHENING OUR CORE | Laundry 1 CAGR 10% _~4 | @ | aul | ” il il Building brands with purpose; Driving premiumization —~wae Surf Excel: Dirt is Good! i RANGON KE, TAAG ACHHEHAINA #RANGLAAYESANG HUL IS THE NO.1 LAUNDRY COMPANY IN INDIA Si a

  7. Slide 7: AV 1: Surf Excel #RangLaayeSang

    C) AV 1: Surf Excel #RangLaayeSang SS |

  8. Slide 8: Hair Care

    Hair Care CAGR 11% Part | | fl | Market Share FY'13 FY'19 ~590 bps Strong play in Naturals; Driving premiumization & innovations HUL IS THE NO.1 HAIR CARE COMPANY IN INDIA rl ’

  9. Slide 9: AV 2: Clinic Plus #MeriBetiStrong

    0 AV 2: Clinic Plus #MeriBetiStrong 8

  10. Slide 10: Tea Red Label: Taste of Togetherness

    Tea Red Label: Taste of togetherness Ts «al il al Ge S FY'13 FY'19 Strong WiMI play; Driving market development HUL IS THE NO.1 TEA COMPANY IN INDIA teem. ,

  11. Slide 11: AV 3: Red Label #TasteOfTogetherness

    C) AV 3: Red Label #TasteOfTogetherness Ds ities "

  12. Slide 12: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  13. Slide 13: Market Development

    MARKET DEVELOPMENT : . . Expansion Powered by consumer Drive category penetration More benefits . . . across sub-categories connects - online & offline (a F (— \ a -_— °o J a ss is 2 q a ui 2 frr| S oO = Go << Increasing penetration in Nascent Categories X Rising Income Building Liquids Portfolio XN

  14. Slide 14: Leverage M&A to Expand Portfolio

    LEVERAGE M&A TO EXPAND PORTFOLIO . ao 7 Naturals play in Hair Care Strengthen Ice Cream portfolio Leverage Health & Wellness trend * Subject to regulatory approvals coming Ne through; proposal pending with NCLT 13

  15. Slide 15: GSK Update

    GSK UPDATE Current status of regulatory approvals State of readiness for integration ) DaQ’18 MQ’19 Jag sag a Current = HUL Board approved the merger Received approval from Competition Commission and clearance of stock exchange Shareholders’ and creditors’ approval received NCLT Mumbai Bench sanctio

  16. Slide 16: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  17. Slide 17: Drive Premiumization

    DRIVE PREMIUMIZATION ae Our premium portfolio is over-indexed to market Portfolio straddling the pyramid Price HUL share Index of segment* » Premium 4 ca =% pte 13x Popular LUX an 1 @ F 0.8x & Ga) a. c >) HUL Mass wheel 2 pa 20.8 xX % contribution of portfolio \ y, 16

  18. Slide 18: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  19. Slide 19: Generate Fuel for Growth

    Non Material 1.8x Materials Supply Chain Costs x Return on Marketing Overheads Investments 2014 2015 2016 2017 2018

  20. Slide 20: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  21. Slide 21: Execute Brilliantly

    EXECUTE BRILLIANTLY Agile supply chain ——Inventory days =—=Service x +1000bps ~0.75x 2014 sag Optimized Inventory holding while sustaining high service levels Systematic expansion in coverage and assortment Ne S Si a Effective Coverage* 1.8x * | il 2015 saqi9 Assortment 1.9x * | mm 2015 saig ~\ Hind

  22. Slide 22: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  23. Slide 23: Winning in Many Indias

    WINNING IN MANY INDIAS va rie India A heterogeneous country Example: High Low Nominal Gross Regional Domestic Product Per Capita (US$) ~\ 4 a WiMl-led distinctive ral premiumization strategy Majority Mass : Uttar Pradesh Upgradation through mid and premium bars and powders Majority Mid: Tamil Nadu ¢

  24. Slide 24: Nimble and Empowered Teams by C4G

    NIMBLE AND EMPOWERED TEAMS BY C4G ae COUNTRY CATEGORY BUSINESS TEAM : 3 DIVISIONS SPLIT INTO 15 MINI-BOARDS Marketing ‘al I Pa ov ~~ rae rA\} se 4 % <-> stn Lid <> Development Functions in a CCBT e « Empowered to More consumer & Land bigger, faster deliver in-year P&L customer centric innovations sp

  25. Slide 25: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  26. Slide 26: Be Human

    BE HUMAN Leaders building leaders Holistic wellbeing Nurturing future leaders Curated personalized learning 6S degreed. Ss & Talent immersions Cross-laning ~\ w = s908 a, a People with purpose Physical and mental wellbeing HUL Awarded Wellbeing’ Gold Category Award ‘Unilever Health and ee thee Hindu

  27. Slide 27: AV 4: Shakti

    ©) av4: Shakti Ds ities :

  28. Slide 28: Reduce Reuse Recycle Recover

    REDUCE • REUSE • RECYCLE RECOVER

  29. Slide 29: AV 5: HUF Water conservation + Suvidha

    C) AV 5: HUF Water conservation + Suvidha SS

  30. Slide 30: AV 6: Plastics - Start a little good

    C) AV 6: Plastics - Start a little good Ds ities ”

  31. Slide 31: Be Accountable

    BE ACCOUNTABLE . ao Flexible goals Pioneering Growth Culture Assessment & Rewards (— >) ett @ Pru, en, One $ . performance signal Empowering individuals & teams to ASSESSMENT re-prioritize and respond with agility Ve TY #7 Differentiated reward e 9@, Compassionate & % scheme AG sae! direct feedback

  32. Slide 32: Building Blocks

    BUILDING BLOCKS PORTFOLIO RIGOUR AND DISCIPLINE Strengthen the Create categories Drive Generate fuel for Execute Core of future premiumization growth brilliantly Brands with purpose ENABLED BY STRUCTURE CULTURE PEOPLE & CAPABILITIES • De-average India • Be Human • Diverse & Inclusive • Nimble & Empo

  33. Slide 33: Diverse & Inclusive

    > DIVERSE & INCLUSIVE ao Hindustan Unilever Limited Gender balance LGBT inclusion Breaking stereotypes Va / >) > ~ 1 a we 6,9 FNoOnelotttchine] #unstereotype the workplace par FOR EVERYONE. +2000 BPS improvement in gender balance Ne JN JW m Ds ities ;

  34. Slide 34: Re-imagining HUL

    RE-IMAGINING HUL AN INTEGRATED E2E PROGRAM ACROSS BUSINESS Organization designed to enable digital transformation ( \sccers vece Legal DIGITAL COUNCIL HUL Digital Council: Representation across functions Market Trans HUL Digital Council jc | sete [econ | mo om | | y, vA PARTNERSHIP WITH START-UP ECO

  35. Slide 35: Supply Chain Transformation

    SUPPLY CHAIN TRANSFORMATION Robotic factory & warehouse loT enabled optimising to ‘Perfect operating conditions’ ‘No touch operations’ ‘Energy management’ XN w, From service to fulfilment TODAY =| MODERN FULLFILMENT TRADITIONAL SERVICE ~ TOMORROW Strengthening distributor & retail business As HIGH A

  36. Slide 36: Assisted & Predictive Decision Making

    ASSISTED & PREDICTIVE DECISION MAKING . ay Livewire: Democratizing data Jarvis: Enabling decisions =o ar >) x x af a cite Embedding in the business decisions LIVEVARE- WHAT =} WHERE "> WHO PRICE PLACE PROMOTIONS TTT T 1 J I 7 Py LAY LNyals Hoa! 4 Jarvis in action { Differential investment choices Wh

  37. Slide 37: Precision Marketing

    PRECISION MARKETING Hindustan Unilever Limited Data driven creative generation Smartpick: Targeted digital sampling Expert content curation Axe: Mapped out high stakes moments in a guy’s life | fa | és) 15 cohorts with 82 short form creatives SMART Sharply Pll Data collected for ALGORITHMS TARGETED

  38. Slide 38: AV 7: Axe Ticket

    ©) Av7: Axe Ticket Ds ities ”

  39. Slide 39: Connected Stores

    CONNECTED STORES Wire up to disrupt before we get disrupted OO HYPERLOCAL eB2B Pos LAST MILE DELIVERY Online placement of Outlets placing Connected POS Tech enabled connected orders by shoppers orders to Hardware or Software delivery system to and & customised offers distributors online for billing

  40. Slide 40: Our Clear and Consistent Strategy Manifests into a Resilient Business

    OUR CLEAR AND CONSISTENT STRATEGY MANIFESTS INTO A RESILIENT BUSINESS…

  41. Slide 41: Consistent growth and market value

    4th largest 32 out of 33 9% CAGR quarters $61b

  42. Slide 42: Leading with External Recognitions

    > LEADING WITH EXTERNAL RECOGNITIONS ao Hindustan Unilever Limited 2018 2018 2018 2009-18 Tie Ecoxomic Tires Awarps Powered Dy THE INNOVATOR'S DNA ‘Employer of Choice’ Business Standard ET Corporate Citizen #8 Globally in the industry Company of the year of the year #1 in India for 10 years in a row

  43. Slide 43: Creating a Purpose-Led and Future-Fit HUL

    CREATING A PURPOSE-LED AND FUTURE-FIT HUL

  44. Slide 44: For more information & updates

    For more information & updates

Hindustan Unilever — Goldman Sachs India CIO Tour 2019 on 6ix